DB:E14

Stock Analysis Report

Edgewater Wireless Systems

Executive Summary

Edgewater Wireless Systems Inc. develops and commercializes technologies and intellectual property for the wireless communications market in Asia, Europe, and North America.


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has Edgewater Wireless Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: E14's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

E14

-9.1%

DE Communications

-0.2%

DE Market


1 Year Return

-50.8%

E14

3.6%

DE Communications

13.7%

DE Market

Return vs Industry: E14 underperformed the German Communications industry which returned 3.6% over the past year.

Return vs Market: E14 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

E14IndustryMarket
7 Day0%-9.1%-0.2%
30 Day32.6%-7.8%0.3%
90 Day-22.8%-9.4%3.7%
1 Year-50.8%-50.8%4.2%3.6%17.2%13.7%
3 Year-85.5%-85.5%-5.6%-5.9%15.4%5.3%
5 Yearn/a86.4%86.1%21.3%4.7%

Price Volatility Vs. Market

How volatile is Edgewater Wireless Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Edgewater Wireless Systems undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Edgewater Wireless Systems is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Edgewater Wireless Systems has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of E14’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Edgewater Wireless Systems regulatory filings.
  • Explore potentially undervalued companies in the Tech industry.

Future Growth

How is Edgewater Wireless Systems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-102.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if E14's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if E14's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: E14's revenue is expected to decline over the next 3 years (-102.2% per year).

High Growth Revenue: E14's revenue is forecast to decline over the next 3 years (-102.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if E14's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Edgewater Wireless Systems performed over the past 5 years?

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E14 is currently unprofitable.

Growing Profit Margin: E14 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: E14 is unprofitable, and losses have increased over the past 5 years at a rate of -8% per year.

Accelerating Growth: Unable to compare E14's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: E14 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).


Return on Equity

High ROE: E14's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Edgewater Wireless Systems's financial position?


Financial Position Analysis

Short Term Liabilities: E14 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: E14 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: E14 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: E14's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: E14 has a low level of unsold assets or inventory.

Debt Coverage by Assets: E14 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: E14 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: E14 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -27.1% each year


Next Steps

Dividend

What is Edgewater Wireless Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate E14's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate E14's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if E14's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if E14's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of E14's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Andrew Skafel 0

5.8yrs

Tenure

CA$180,000

Compensation

Mr. Andrew Skafel has been the President of Edgewater Wireless Systems, Inc., since October 13, 2011 and has been its Chief Executive Officer since April 30, 2014. Mr. Skafel has been a Director of Edgewat ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD412.50K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Skafel
President5.8yrsCA$180.00k0.86% CA$61.4k
Duane Anderson
Founder & Chairman of Wireless Technology Advisory Panel0yrsno datano data
Robert Harper
Chief Financial Officer4.8yrsCA$114.00k0.0059% CA$419.1
Paul Morton
Vice-President of Programs & Sales15.8yrsno datano data
Matt Massey
Vice President of Marketing0yrsno datano data

5.8yrs

Average Tenure

Experienced Management: E14's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Skafel
President5.8yrsCA$180.00k0.86% CA$61.4k
Hubert A. Whyte
Independent Director7.9yrsno data0.085% CA$6.0k
Denis Cote
Member of Advisory Board0yrsno datano data
Richard Nottenburg
Director0.8yrsno datano data
Jane Barratt
Director3.2yrsno datano data
Stephen Andrews
Director2yrsno data0.20% CA$14.2k
Brian Imrie
Director3.2yrsno data0.70% CA$50.0k
Christopher McGillivray
Director1.7yrsno data0.16% CA$11.2k

2.0yrs

Average Tenure

Experienced Board: E14's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.


Top Shareholders

Company Information

Edgewater Wireless Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Edgewater Wireless Systems Inc.
  • Ticker: E14
  • Exchange: DB
  • Founded: 1980
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$10.184m
  • Listing Market Cap: CA$7.116m
  • Shares outstanding: 169.74m
  • Website: https://www.edgewaterwireless.com

Location

  • Edgewater Wireless Systems Inc.
  • 408 Churchill Avenue North
  • Ottawa
  • Ontario
  • K1Z 5C6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YFITSXV (TSX Venture Exchange)YesCommon SharesCACADOct 2011
KPIF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2011
E14DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2011

Biography

Edgewater Wireless Systems Inc. develops and commercializes technologies and intellectual property for the wireless communications market in Asia, Europe, and North America. It offers Wi-Fi spectrum slicing and dual channel Wi-Fi products; PowerZoning, a channel power and association rate control product for multi-channel single radio Wi-Fi networks; spectral surveillance technologies, as well as powered access points for indoor and outdoor deployments; and chipsets, radio cards, and silicon solutions. The company was formerly known as KIK Polymers Inc. and changed its name to Edgewater Wireless Systems Inc. in January 2012. Edgewater Wireless Systems Inc. was incorporated in 1980 and is headquartered in Ottawa, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:04
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.